Chapter 224

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AN ACT RELATIVE TO INSURANCE AND LAWFUL TRAVEL BY APPLICANTS FOR LIFE AND DISABILITY INSURANCE AND INSURED INDIVIDUALS.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Chapter 175 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by inserting after section 108I the following section:-

Section 108J. (a) An insurer or producer authorized to issue policies against disability from injury or disease in the commonwealth shall not make a distinction or otherwise discriminate between persons, reject an applicant, cancel a policy, or demand or require a higher rate of premium for reasons based solely upon an applicant’s or insured’s past lawful travel experiences or future lawful travel plans.

(b) This section shall not prohibit an insurer from excluding or limiting coverage under a policy issued against disability from injury or disease, or refusing to offer the policy, based upon past lawful travel or future lawful travel plans, or from charging a different rate for that coverage, when that action is based upon sound actuarial principles or is related to actual or reasonably expected experience and is not based solely on the destination’s inclusion on the United States Department of State Travel Warning List.

(c) A violation of this section shall constitute an unfair method of competition or unfair and deceptive act or practice pursuant to chapter 176D.

SECTION 2. Said chapter 175 is hereby further amended by inserting after section 122 the following section:-

Section 122A. (a) An insurer or producer authorized to issue policies on the lives of persons in the commonwealth shall not make a distinction or otherwise discriminate between persons, reject an applicant, cancel a policy or demand or require a higher rate of premium for reasons based solely upon an applicant’s or insured’s past lawful travel experiences or future lawful travel plans.

(b) This section shall not prohibit an insurer from excluding or limiting coverage under a life insurance policy, or refusing to offer life insurance, based upon past lawful travel or future lawful travel plans, or from charging a different rate for that coverage, when that action is based upon sound actuarial principle or is related to actual or reasonably expected experience and is not based solely on the destination’s inclusion on the United States Department of State Travel Warning List.

(c) A violation of this section shall constitute an unfair method of competition or unfair and deceptive act or practice pursuant to chapter 176D.

SECTION 3. This act shall apply to all life and disability policies delivered or issued for delivery in the commonwealth on or after its effective date.